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How Does Domino's Earnings Stack Up?

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How Does Domino's Earnings Stack Up?

Shares of Domino's Pizza (NYSE: DPZ) are down roughly 7% since reporting its Q1 earnings last week, showing what a challenging time it is for restaurants. 

In a vacuum, Domino's results for the quarter were quite strong. The company reported fiscal first-quarter net income of $121.6 million resulting in earnings of $3.07 per share, while net sales rose 4.4% to $873.1 million. Both the EPS and sales numbers came in above analyst estimates and U.S. same-store sales also grew 7.1% on a year-over-year basis. 

In the same quarter last year, net income was $92.6 million, or $2.20 per share. As for global sales, they also grew 4.4% in the first quarter, 5.9% if you exclude the impact of foreign currencies.

As for the international business, the first quarter was the 105th consecutive quarter of international same-store sales growth.

Still, Domino's appears to be better positioned than some of its main competitors.  

Pizza Hut owners Yum! Brands (NYSE: YUM) reported Q1 EPS slightly below expectations with sales slightly above. However, same-store sales declined 7% for the period as a result of widespread store closures. Shares of YUM are mostly flat since its report.

Meanwhile, Starbucks (NASDAQ: SBUX) reported a mixed quarter as well, beating expectations on sales but missing on earnings. Comparable sales declined 10% overall. And though the company is reopening 95% of its stores in China, they said they expect the current quarter to be incrementally worse from a financial perspective. Shares of SBUX are down about 1% since its report was released.

The fact that all three of these major restaurant chains are trading down after their reports shows what a challenging environment it is. Investors can at least take solace in the fact that Domino's exceeded expectations across the board when compared to its peers. That should leave them in a better position when we get on the other side of this crisis. 

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: contributors@iamnewswire.com

The post Should Domino's Pizza Dare to Celebrate? appeared first on IAM Newswire.

 

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